Republicans Pass Budget That Raises Teacher Pay by $1,000 Above Inflation and Invests Over $300 Million in New K-12 Spending

STATE CAPITOL, PHOENIX – House Speaker J.D. Mesnard (R-17) and Senate President Steve Yarbrough (R-17) this morning applauded passage of a budget that increases teacher pay by an average of $1,000 and adds over $300 million for K-12 education.

“Republicans in the Legislature and Governor Ducey have worked hard to craft a budget that reflects Arizonans’ top priority: education,” said Speaker Mesnard. “This budget includes a $1,000 raise beyond inflation for public school teachers, over $300 million in new K-12 spending, a massive investment in university research facilities and infrastructure, and dozens of other provisions that boost education funding.”

“Conservative budgeting over the past few years put extra money in our state coffers,” said President Yarbrough. “With that, this year we boosted teacher paychecks, provided funding for school repairs and the construction of six new schools, targeted tens of millions of dollars to schools getting results, guaranteed yearly funding for university building projects and provided an additional $30 million to repair our roads. We also delivered a broad-based tax cut and left the state with a structurally-balanced budget. I’d say the people of Arizona are better off because of this state budget.”

Highlights of the budget:

· In addition to inflation and growth increases, directs $68 million over two years for an average $1,000 raise for public school teachers.

· Appropriates $62.9 million for new school construction projects.

· Provides $37.6 million for Results-Based Funding for K-12 education.

· Offsets the impact of Prop. 206 on the developmentally disabled community by directing $45 million to the Department of Economic Security and AHCCCS.

· Demonstrates a commitment to rural transportation by appropriating $30 million to the Highway User Revenue Fund.

· Appropriates $27 million to provide debt service to allow universities to construct new facilities through bonding that could exceed $1 billion in value in future years.

There’s a short news item on AZCentral by Mary Jo Pitzl this morning reporting a “sour note” in the harmony sought by Arizona House Speaker, JD Mesnard.

Apparently, State Representative Dr. Randy Friese (D-9) wanted to sponsor the bill restoring funding to TANF (Temporary Assistance for Needy Families) but was beat to the hopper by Republican State Representative Jeff Weninger.

Friese called the move an example of “hyper partisanship.”

Rep Jeff Weninger

During his State of the State address on Monday, Republican Governor Doug Ducey announced a round of legislative and budget initiatives including the restoration of TANF funding. Weninger, who represents Chandler, is spearheading the bill.

Dr. Friese and his Democrat colleagues made it obvious that they don’t approve of Republicans stealing their brand of helping the most needy because it takes away an issue they’ve used to craft political dependency. It pains them to lose credit on the issue and by alleging the move as an act of “hyper partisanship,” Friese hurts his credibility should he sign on as a co-sponsor the bill.

Randall Friese

Speaker Mesnard, perhaps presented a more realistic forecast of legislative action acknowledging the challenges of finding room in the budget to fully restore TANF.

Unfortunately for Rep. Friese, Democrats don’t control either chamber so it’s in their best interest to stop acting petty and become team players on issues they support.

Why: Americans for Prosperity Arizona will be honoring our top activists-America’s freedom fighters and our friends! We will also honor legislators and local government officials with the designation of Friend of the Taxpayer of higher on our annual scorecards (Legislative Scorecard and Local Government Scorecard).

Dinner and drinks will be provided.

AFP across the United States contacted 30 million Americans at the phone and the door – that’s 10% of the entire country! All told, AFP advocated against Senate candidates in eight states. All but one of those candidates were defeated. That’s something to celebrate! We will giving each of our top winners a prized jackalope.*

*Think that jackalopes do not exist? Well, that’s how a lot of taxpayers feel when we tell them that there are pro-taxpayer elected officials and local activists. But they really do exist! And we plan to honor them on Friday, December 9th. Please join us!

Yesterday, State Representative Kelly Townsend revealed a dark side of Senate President Andy Biggs. During a guest opinion on Sunday Square Off, the two-term legislator from Arizona Legislative District 16 disclosed that Biggs’ leadership style was to punish lawmakers who refused to get in line with his political agenda and leadership.

Townsend tied the comments to her 2015 House vote in which the legislature voted to limit Temporary Aid to Needy Families (TANF) – a vote she regrets. Townsend herself, is a widow with children representing a district adjacent to the district represented by Biggs.

In her comments, she stated, “I think it’s important to remember whose bill this was. This was our senate president’s bill. Part of that decision is the fact that [Biggs] has very well trained us. He’s punitive in his nature, and if we didn’t follow along, we would suffer the consequences.”

The interview, which is posted on the 12 News website, also posted the following comments:

When pressed further about her disagreements with Biggs, Townsend accused the 14-year state legislator and current congressional candidate of fostering a culture at the state capitol she described as “a heavy-handed, top down, ramming things through in the middle of the night approach.”

“It is a culture many of us are trying to change,” Townsend said.

The article continues:

Townsend also accused Biggs of refusing to communicate with her and preventing bills she sponsored from progressing through the legislature for two years. Townsend said she believed Biggs’ actions were payback because she gave a radio interview in support of a bill Biggs opposed in 2013.

“[In 2013] He would refuse to meet with me. He didn’t answer any of my calls or texts. He killed all my bills. Finally I cornered him and asked for a conversation, and he said I should have never called into the radio station in the first place to talk about that bill,” Townsend said. “When it comes to leadership, Biggs, I don’t know he knew how to be a leader. Anyone can be punitive and act like that. But in terms of being a leader, it takes more than just being a jerk.”

This revelation draws into question Biggs’ temperament and leadership style as the potential nominee for Arizona’s 5th Congressional District.

Biggs’ spokesman, Adam Deguire, the former Chief of Staff to Congressman Matt Salmon who is now part of the political hand-off arrangement between Salmon and Biggs, acknowledged Biggs’ unpopularity with the mainstream media on issues such as TANF.

Senator Andy Biggs has not made an appearance on Sunday Square Off since February 27, 2011 and failed to show up last week for a debate on KAET’s Horizon.

I strongly support Prop. 123 and am baffled by opposition to it, most of which seems to claim it will do irreparable harm to the state’s permanent fund.

This simply isn’t true.

To help Arizona transition from a frontier territory to the 48th state, the federal government turned over to the new state about 11 million acres of land, to be held in trust for the support of public needs, the first and foremost of which was K-12 education.

The state accomplishes that role by selling and leasing state trust lands to produce revenue. The revenue from the sale of state trust lands are deposited into Arizona’s permanent fund. The money in the permanent fund is then invested by the state in stocks, bonds and other investments and produce additional returns.

We’re dipping into interest, not the fund

Arizona’s permanent fund is currently worth about $5 billion, and the trust earns money each year, with an average rate of return over 6.9 percent for the past 10 years.

Right now, 2.5 percent of the value of the permanent trust fund is distributed on an annual basis to beneficiaries like K-12 public schools. Voting “yes” on Prop. 123 would increase the distribution amount to 6.9 percent (roughly $342 million per year) from 2.5 percent (roughly $125 million per year) for a period of 10 years.

Given that the permanent fund has averaged a rate of return in excess of this proposed 6.9 percent distribution for the past 10 years, which includes the depths of this past recession, we should view Prop. 123 as an agreement to distribute the anticipated interest from the permanent fund to the trust beneficiaries – and not as an agreement to dip into the $5.1 billion corpus of the permanent fund.

Trust also includes $70 billion in land

We also shouldn’t lose sight of the fact that the trust is composed not only of the $5.1 billion in the permanent fund, but also of the value of the remaining state trust lands, which have a current estimated value of some $70 billion.

As urban growth has reached formerly outlying areas of state trust land, it stands to reason that this value will very likely increase in future years as expanding infrastructure and growth drive values to those lands.

Using $3.5 billion of that combined $75 billion of value over the next 10 years to help educate our K-12 kids is hardly a wasteful dissipation of the trust assets. Indeed, the combined values of the state trust lands and permanent trust fund should very well be even greater in 10 years based on current and expected trends. In any event, the myth of destruction of the trust needs to be exposed.

Why not put this cash to better use?

Prop. 123 does not mandate the sale of any part of the land being held in trust for K-12. That asset will continue to be managed in the best manner possible to provide for this generation of students as well as future generations.

Prop. 123 does put appropriate pressure on the state to ensure it performs its role in producing a quality revenue stream to support the intended beneficiaries of the trust, including our K-12 system.

Here is my question. From what do we get greater value: sitting on the assets in the trust (earning a bit), or investing $3.5 billion to better educate millions of Arizona kids today?

An educated citizenry is the best guarantee of economic growth and societal health. In other words, this human capital will be much more valuable for the state than keeping the assets in the trust, which is supposed to exist to help educate our youth.

In addition, this funding will also satisfy a legal obligation resulting from court decisions holding that the state government had not devoted sufficient appropriations to K-12 education in the past. Without Prop. 123, it is likely a tax increase would be necessary to meet this legal obligation.

Let us keep in mind that the trust was intended from the beginning to provide support for our K-12 system. Rather than allowing the trust to continue to underfund our current students, we should support Prop. 123 and put those funds to work in our classrooms now.

Former U.S. Sen. Jon Kyl is senior counsel at Covington and Burling in Washington, D.C.

Advocates for Proposition 123 appeared on KAET’s Horizon on Monday evening to make the case for passage of Prop 123. Here is the video of that show featuring Chris Thomas, General Counsel for the Arizona School Boards Association:

It’s that weird time of the political season when conflicts arise revealing where politicians’ priorities really are.

Yesterday, leaders of the Arizona House and Senate reached a deal on how to divvy up sections of Governor Ducey’s budget proposal. That deal will be revealed today.

Setting aside the details of the deal, it’s worth pointing out where leaders of both chambers are spending their time as this process unfolds.

Every legislator acknowledges that the most important part of their job is to pass a budget that establishes the financial priorities for the State of Arizona. It’s what voters elect candidates to do and it’s the epitome of responsibility for legislators once elected.

[pullquote align=”full” cite=”” link=”” color=”” class=”” size=””]When it comes down to governing or campaigning, governing should always take priority.[/pullquote]

Citizens would think and expect leadership in the House and Senate to treat this constitutional obligation with the utmost attention. Apparently that obligation can take a back seat if you’re a candidate for another office while holding down your leadership position in the legislature.

House Speaker David Gowan got it right (although he is avoiding interaction with members of the media these days) when he skipped a CD-1 candidate forum in Casa Grande Monday night. He stuck around the legislature to make sure the House wrapped up the budget deal.

It wasn’t the same on the Senate side. Senate President Andy Biggs was nowhere to be found in the State of Arizona. Instead, he is making the rounds in Washington, DC trying to raise money for his next government gig. According to the Arizona Republic:

Senate Majority Leader Steve Yarbrough, R-Chandler — who was acting as Senate president while Andy Biggs was in Washington, D.C., Monday fundraising for a congressional campaign…

Senate President Biggs who has become the professional career politician obviously feels the need to fly back to Washington, rub elbows with lobbyists and return home with a bundle of campaign cash.

Meanwhile, his colleagues in the House and Senate will work through the details on how best to spend Arizona taxpayer dollars.

It’s all about priorities.

~ He that is faithful in that which is least is faithful also in much (Luke 16:10)

I am proud of our schools in Arizona. A number of our high schools are consistently ranked near the top of U.S. studies. We were one of the first states to create charter schools and our Empowerment Scholarship Accounts allow parents to find the best education option for their children. These two reforms are models being emulated throughout the country. I personally have toured and seen the excellent achievement of our students and teachers throughout my district.

Friday, October 30, the Legislature passed and the Governor signed an increase of $3.5 billion over the next ten years to our schools. This will bring new money into our K-12 school system, if voters approve the plan in a special election to be held May 17, 2016.

Part of the funding will come from a new percentage level, 6.9%, distributed to the State Schools Fund from the Permanent Land Endowment Trust Funds (PLETF). The Arizona Constitution determines the portion of investment earnings the Treasurer must distribute annually to each beneficiary. Right now annual distributions are set at 2.5% of the average monthly market valuation of the PLETF from the preceding five years. The voters will be asking to approve the increase above 2.5% in the May election.

Governor Ducey was State Treasurer before being elected Governor, so he understands this trust fund and how it functions. In 2012 he developed Proposition 118, to move to a fixed rate of 2.5%, instead of a fluctuating rate used at the time. Voters approved that proposal.

Three years later, the Governor proposed to increase that amount to 6.9%, and the Legislature agreed. We spent much time in debate and talking to lawyers and staff about the ramifications of the increased percentage. I am convinced that we have been short changing our schools all these years. The PLETF is now valued at $5 billion and the consensus of those who voted yes is that we can safely pay this out to our schools and protect the principle of the fund.

Triggers are placed within the law in case we have another major economic downturn. It would require the Directors of the Office of Strategic Planning and Budgeting (OSPB) and the Joint Legislative Budget Committee (JLBC) to jointly notify the Governor, the President of the Senate and Speaker of the House that a reduction to the distribution is necessary to preserve the safety of the capital in the PLETF, if the value of the PLETF has decreased. At that point we would return to the 2.5%.

This was a complicated issue that took hundreds of hours of work by all concerned, but I am confident that we have made a very good decision in increasing the payout from the State Schools Trust Fund.

The proposal also included increased money for schools from the General Fund.

Increases the per pupil amount by $173.26

Increases basic state aid by $248,829,400 in FY2016 by increasing the base level per pupil amount

Includes additional inflation of $74,394,000 in FY2016

Increases the Permanent State School Fund distribution line item by $172,081,000

Appropriates to the Superintendent of Public Instruction additional funding for school districts and charter schools of $50 million annually in FY2016 through FY2020

Allows flexibility for school districts to budget the additional funding to where they feel it is needed.

None of this will increase taxes for our citizens and is being done within the capacity of what we have now.

We hear all the time how bad Arizona ranks in school spending, but those rankings can be very misleading. Other states have 95% of land privately owned and is part of the tax base. In Arizona, we are generating revenue from 13% private property. We will never raise revenues to the level of those other states.

Also, Arizona has a high population of those under 18 years of age and a large population of adults over 65 years of age. In the 18-64 age bracket where the bulk of taxpayers reside, we have a proportionally small population, so again, we will never be able to reach the revenues of other states without significantly increasing taxes.

This ranking propaganda by our critics is designed to pressure taxpayers to fund more into our schools. We are short changing our teachers and kids when we constantly focus on a ranking instead of results. Funding is important but does not guarantee a good education that depends on parents, teachers, and, most of all, students.

I wish to thank the Arizona taxpayer who is willing to give their hard-earned money to better the life of children through our education system in Arizona.

This past Saturday, approximately 5,000 Arizonans joined in protests at six Planned Parenthood locations across the state. These protests were in response to the gruesome videos exposing Planned Parenthood’s harvesting and selling of baby body parts.

At 342 protests across the country, tens of thousands stood for life and against Planned Parenthood’s barbaric actions towards innocent life in the womb.

Here in Arizona, we organized these protests to highlight what is happening inside of Planned Parenthood clinics, to call attention to the federal taxpayer dollars that are allocated to Planned Parenthood, and to encourage the media to bring to light the atrocities that have been covered up for too long by the abortion lobby. Any taxpayer dollars to Planned Parenthood for any services helps to support their position as the state’s largest abortion provider.

These peaceful protests featured many pro-life community leaders, religious leaders and elected officials as speakers. Thousands of women, men, children, mothers and fathers, and grandparents came together to present an alternative to abortion, and to communicate the beautiful narrative of life’s preciousness.

Most of the protesters left their locations Saturday, vowing to continue the fight for the preborn. For many, Saturday’s protests marked the first time they have participated in the pro-life movement. The winds of change are swirling in this country, and Saturday’s protests highlighted that fact.

We’d like to thank all the members of law enforcement who protected our First Amendment rights to peaceably protest and for all those who rallied together for life.

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